Managerial Economics

When a firm increased its output by one unit, its Average Cost rose from $45 to 50. This implies that its Marginal cost is
A)greater than $50
B)between $45 and $50
D)cannot be determined from the above information

  1. 👍
  2. 👎
  3. 👁
  1. D)cannot be determined from the above information

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    Suppose the short run market price a competitive firm faces is Birr 9 and the total cost of the firm is: TC = 200 + Q + 0.02Q 2 . Answer the questions that follow. (A) Calculate the short run equilibrium output and profit of the

  2. Mathematics in Economy

    A firm produces two different kinds A and B of a commodity. The daily cost of producing x units of A and y units of B is C(x,y) = 0.04x2 + 0.01xy + 0.01y2 +4x + 2y +500 Suppose that firm sells all its output at a price per unit of

  3. Economics

    You’ve been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and

  4. To: Economyst

    Hi there. You helped me with a couple of questions regarding Econ. I appreciate the help but my issue is I don't understand how you calculate the minimum average variable cost or the output that maximizes profit. I do understand

  1. Managerial Economics

    Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000.

  2. 1. A firm produces a product in a competitive indu

    1. A firm produces a product in a competitive industry and has a short-run total cost function C(q) =4q2+16. a. Derive the supply function of the firm. b. Find the output that minimizes average total cost. c. At what range of

  3. economics

    A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit? b. what is the marginal cost? c.

  4. Economics

    A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. You may wish to

  1. Quantitative analysis

    The cost of a firm producing colour television has worked out the total cost function for the firm as TC=120Q-Q^2+0.02Q^3.A sales manager has provided the sales forecasting function as P=114-0.25Q where P is price and Q the

  2. economics

    perfectly competitive industry. Each firm having identical cost structures. long-run average cost is minimized at an output of 20 units. Minimum average cost is $10 per unit. total market demand is Q=1500-50P. What is the long-run

  3. economics

    This is going to be really long, but I want to see if my answers are correct. This is problem number 10.10 in my Intermediate Microeconomics book. A perfectly competitive painted necktie industry has a large number of potential

  4. Microeconomics

    If a firm has a U-Shaped long-run average cost curve, a.) its fixed cost rises as output rises. b.) it must have increasing returns to scale at low levels or production and decreasing returns to scale at high levels of production.

You can view more similar questions or ask a new question.